While it’s always entertaining to try and peer into the future of Apple, rumors that swirl around are not always accurate. In addition, even when the rumors turn out to be true, Apple frequently tries to deflect users away from the correct conclusions.

Today Reuters is reporting that Apple is working on new versions of the popular iPad. The new device will have two built-in cameras to use with Apple’s FaceTime video chat application that is available on other Apple platforms, and one to take pictures/videos. The device will also have a better screen, similar to the “Retina display” available on the iPhone.

In addition to the above improvements, it is also rumored that Apple will be creating a smaller version of the iPad. The device is said to be nearly half the size of the current 9.7” screen model and will fill the gap between the extremely portable iPod Touch/iPhone and the relatively large iPad. Steve Jobs had dismissed this rumor back in October but according to the article, a source in the supply chain has said that the smaller iPads are on the way.

Although not all of these rumors are new, the fact that Apple has inked deals with multiple sourcing vendors to create these new products makes it seem like a fairly safe bet that the new devices are on the horizon. January might be a bit too soon to see the products, but expect an announcement from Apple sometime in the near future.